Full-Year Production and Cost Guidance
Reaffirmed
Coeur Mining, Inc. (“Coeur” or the “Company”) (NYSE: CDE) today
reported first quarter 2019 financial results, including revenue of
$154.9 million, adjusted EBITDA1 of $26.1 million and cash flow
from operating activities of $(11.8) million. Prior to changes in
working capital, cash flow from operating activities totaled $21.5
million. Including a non-cash write down of $15.4 million taken in
the quarter, the Company reported GAAP net loss from continuing
operations of $24.9 million, or $0.12 per share. On an adjusted
basis1, the Company reported a net loss of $23.0 million, or $0.11
per share.
The Company is reaffirming full-year 2019 production guidance of
334,000 - 372,000 ounces of gold, 12.2 - 14.7 million ounces of
silver, 25 - 40 million pounds of zinc and 20 - 35 million pounds
of lead. In addition, full-year cost guidance is being
reaffirmed.
Key Highlights
- Production on-track to achieve
full-year guidance ranges - Full-year financial and operational
results expected to benefit from higher second half production
driven by the anticipated impact of high-pressure grinding roll
(“HPGR”) technology at Rochester, higher recovery rates and
production levels at Palmarejo, and improved plant performance and
higher grades at Silvertip
- Strong operating cost performance
across the Company’s portfolio - First quarter adjusted costs
applicable to sales (“CAS”)1 at each operation either below or
in-line with full-year guidance ranges. Site-level unit costs
expected to trend lower due to higher expected second half
production levels
- Installation of HPGR unit at
Rochester on-track - Despite unseasonably high snowfall levels,
commissioning of the HPGR unit remains on-budget and on-schedule.
Commissioning activities now underway and impact on silver recovery
rates expected to be seen beginning mid-year
- Improved results at Silvertip with
continued focus on achieving positive cash flow - Although
slower than originally expected, results at Silvertip improved
quarter-over-quarter. March 2019 represented the strongest month of
performance since acquisition with revenues more than doubling in
the first quarter. Current areas of focus include (i) sustaining
consistent levels of mill availability to allow for recovery rate
optimization, (ii) accelerating underground development rates to
enhance mining flexibility and access to higher grade ore, and
(iii) workforce training and retention initiatives
- Kensington now shifting focus at
Jualin from development activities to production - Mining
activities at Jualin transitioned from development to production
during the first quarter, with the high-grade deposit contributing
approximately 10% of Kensington’s production at an average grade of
0.41 ounces per ton (“oz/t”). Jualin is expected to account for
approximately 20% of Kensington’s total production in 2019. Higher
mining rates from Jualin are expected to contribute to higher
production levels and lower unit costs throughout the remainder of
2019
- Continued commitment to
success-based exploration program - Following last year’s
strong reserve and resource increases, 2019 drilling programs
commenced by investing a total of $6.6 million in resource
expansion and conversion drilling targeting Palmarejo and
Kensington as well as the new Sterling and Crown deposits
- Cash and cash equivalents as of
March 31, 2019 of $69.0 million - $135.0 million currently
drawn on the Company’s $250.0 million senior secured revolving
credit facility, the terms of which were amended subsequent to the
end of the first quarter to enhance near-term financial
flexibility. Liquidity levels expected to climb during the second
half of 2019 due to higher anticipated production levels and lower
unit costs
“First quarter operational and financial results were consistent
with our expectations,” said Mitchell J. Krebs, President and Chief
Executive Officer. “Although Silvertip’s ongoing ramp-up remains a
near-term drag on our free cash flow and liquidity levels until it
achieves steady-state, our balanced portfolio of operations are
advancing several key initiatives that are expected to help us
achieve our objective of returning to positive free cash flow in
2019.”
Financial and Operating Highlights
(Unaudited)
(Amounts in millions,
except per share amounts, gold ounces produced & sold, and
per-ounce/pound metrics) 1Q 2019 4Q 2018
3Q 2018 2Q 2018 1Q 2018
Gold Sales $ 106.8 $ 96.3 $ 103.0 $ 117.2 $
110.5
Silver Sales $ 40.1 $ 44.6 $ 43.0 $ 52.8
$ 52.8
Zinc Sales $ 5.6 $ 1.9 $ 1.7 $ — $ —
Lead Sales $ 2.4 $ 1.0 $ 1.0 $ — $ —
Consolidated Revenue $ 154.9 $ 143.8 $ 148.8 $
170.0 $ 163.3
Costs Applicable to Sales $
131.7 $ 116.6 $ 116.9 $ 108.2 $ 99.3
General and
Administrative Expenses $ 9.5 $ 7.1 $ 7.7 $ 7.7 $
8.8
Net Income (Loss) $ (24.9 ) $ 0.4 $
(53.0 ) $ 2.9 $ 0.7
Net Income (Loss) Per Share $
(0.12 ) $ 0.00 $ (0.29 ) $ 0.02 $ 0.00
Adjusted
Net Income (Loss)1 $ (23.0 ) $ 16.1
$ (19.7 ) $ 1.1 $ 0.3
Adjusted Net Income (Loss)1
Per Share $ (0.11 ) $ 0.08 $ (0.11 ) $
0.01 $ 0.00
Weighted Average Shares Outstanding 202.4
199.5 185.2 187.5 187.6
EBITDA1 $ 14.8
$ 7.9 $ (12.3 ) $ 42.1 $ 49.4
Adjusted EBITDA1
$ 26.1 $ 36.2 $ 24.7 $ 48.4 $ 49.2
Cash Flow from
Operating Activities $ (11.8 ) $ 0.1 $ 5.8
$ (1.3 ) $ 15.5
Capital Expenditures $ 27.4 $
17.8 $ 39.5 $ 41.2 $ 42.3
Free Cash Flow1 $
(39.3 ) $ (17.7 ) $ (33.7 ) $ (42.5 ) $ (26.8 )
Cash, Equivalents & Short-Term Investments $
69.0 $ 115.1 $ 104.7 $ 123.5 $ 159.6
Total
Debt2 $ 456.8 $ 458.8 $ 429.2 $ 419.7 $
414.0
Average Realized Price Per Ounce – Gold $
1,251 $ 1,214 $ 1,150 $ 1,241 $ 1,268
Average Realized
Price Per Ounce – Silver $ 15.22 $ 14.59 $ 14.68
$ 16.48 $ 16.70
Average Realized Price Per Pound – Zinc
$ 1.19 $ 0.83 $ 0.93 $ — $ —
Average Realized
Price Per Pound – Lead $ 0.86 $ 0.80 $ 0.90 $ — $
—
Gold Ounces Produced 78,336 92,546 87,539 94,052
85,383
Silver Ounces Produced 2.5 3.5 2.9 3.2 3.2
Zinc Pounds Produced 3.7 3.1 1.1 — —
Lead Pounds
Produced 3.1 1.7 0.4 — —
Gold Ounces Sold
85,326 79,291 89,609 94,455 87,153
Silver Ounces Sold
2.6 3.1 2.9 3.2 3.2
Zinc Pounds Sold 4.7 2.6
1.8 — —
Lead Pounds Sold 2.7 1.4 1.2 — —
Financial Results
First quarter revenue increased 8% to $154.9 million compared to
$143.8 million in the fourth quarter of 2018. The Company sold
85,326 ounces of gold and 2.6 million ounces of silver during the
quarter, representing an 8% increase and 14% decrease,
respectively, compared to the prior period. Zinc and lead sales
totaled 4.7 million and 2.7 million pounds during the first
quarter, or 81% and 93% increases, respectively,
quarter-over-quarter.
Average realized gold and silver prices for the quarter were
$1,251 and $15.22 per ounce, respectively, or 3% and 4% higher
quarter-over-quarter. The average realized gold price during the
quarter reflects the sale of 8,803 gold ounces at a price of $800
per ounce pursuant to Palmarejo's gold stream agreement. Average
realized zinc and lead prices, net of treatment and refining
charges, for the quarter were $1.19 and $0.86 per pound,
respectively, or 43% and 8% higher compared to the prior
quarter.
Gold and silver sales accounted for 69% and 26%, respectively,
of first quarter revenue, while zinc and lead sales contributed 4%
and 1%, respectively. The Company’s U.S. operations accounted for
approximately 59% of first quarter revenue, down from approximately
62% in the prior period primarily due to increased sales from
Silvertip, which totaled $10.9 million during the quarter.
Quarterly costs applicable to sales were $131.7 million compared
to $116.6 million in the fourth quarter of 2018, reflecting higher
operating costs at Palmarejo, Kensington and Silvertip. First
quarter general and administrative expenses were $9.5 million
compared to $7.1 million in the prior period driven by higher
employee-related and legal expenses.
Quarterly exploration expense was $3.7 million, or 10% lower
quarter-over-quarter. The Company focused on near-mine targets at
Palmarejo and Kensington, while commencing drilling activities at
the Sterling and Crown exploration properties in southern Nevada.
See page 11 for further details.
During the first quarter, the Company recorded an income tax
benefit of $8.7 million, largely attributable to lower taxable
earnings during the quarter. Cash income and mining taxes paid
during the quarter totaled $9.7 million. In April 2019, the Company
paid $9.3 million in cash taxes related to its acquisition of
Northern Empire Resources Corp. (“Northern Empire”). The cash
outflow will be reflected in the Company’s second quarter financial
results and will allow Coeur to utilize its U.S. net operating loss
carryforwards against any future income generated from the Sterling
and Crown properties.
Operating cash flow of $(11.8) million in the first quarter was
impacted by unfavorable changes in working capital, primarily due
to an inventory adjustment at Silvertip. Excluding these changes,
first quarter operating cash flow was $21.5 million1.
First quarter capital expenditures totaled $27.4 million,
compared to $17.8 million in the fourth quarter 2018. Higher
capital expenditures were driven primarily by higher investment
levels at Palmarejo, Rochester and Silvertip. Sustaining and
development capital expenditures accounted for approximately 79%
and 21%, respectively, of the Company’s capital expenditures in the
first quarter.
On April 30, 2019, the Company amended its credit agreement with
respect to its senior secured revolving credit facility. The
amended terms of the credit agreement provide the Company with
additional financial flexibility during the remainder of 2019 while
ramp-up activities continue at Silvertip and anticipated production
levels increase across the Company’s portfolio during the second
half of the year.
Operations
First quarter 2019 highlights for each of the Company’s
operations are provided below.
Palmarejo, Mexico
(Dollars in millions, except per ounce amounts) 1Q
2019 4Q 2018 3Q 2018 2Q
2018 1Q 2018 Tons milled 378,987
378,389 300,116 344,073 359,893
Average gold grade (oz/t)
0.07 0.08 0.10 0.11 0.10
Average silver grade (oz/t)
4.64 5.96 6.26 6.86 6.88
Average recovery rate – Au
83.4% 97.6% 88.8% 89.9% 80.4%
Average recovery rate –
Ag 72.8% 84.0% 82.2% 87.5% 81.4%
Gold ounces
produced 23,205 31,239 27,885 33,702 29,896
Silver
ounces produced (000’s) 1,278 1,893 1,544 2,066 2,013
Gold ounces sold 27,394 23,667 29,830 31,207 30,888
Silver ounces sold (000’s) 1,405 1,534 1,572 2,092
2,031
Average realized price per gold ounce $1,154
$1,148 $1,082 $1,162 $1,168
Average realized price per silver
ounce $15.39 $14.57 $14.75 $16.49 $16.73
Metal
sales $53.2 $49.6 $55.5 $70.7 $70.0
Costs applicable
to sales $33.2 $27.1 $31.6 $30.3 $31.1
Adjusted
CAS per AuOz1 $713 $624 $615 $497 $519
Adjusted CAS per AgOz1 $9.66 $7.92
$8.39 $7.05 $7.43
Exploration expense $1.0 $0.1 $3.2
$3.2 $4.0
Cash flow from operating activities $5.9
$13.3 $8.6 $1.3 $27.3
Sustaining capital expenditures (excludes
capital lease payments) $6.0 $3.6 $2.0 $9.5 $9.3
Development capital expenditures $2.7 $2.3
$2.7 $— $—
Total capital expenditures
$8.7 $5.9 $4.7 $9.5 $9.3
Free cash flow1
$(2.8) $7.4 $3.9 $(8.2) $18.0
- First quarter gold and silver
production decreased 26% and 32%, respectively, to 23,205 and 1.3
million ounces compared to the prior quarter. Year-over-year, gold
and silver production decreased 22% and 37%, respectively
- Lower production levels were primarily
driven by temporarily lower grades and recoveries due to mine
sequencing and are expected to increase in subsequent quarters
- First quarter adjusted CAS1 for gold
and silver on a co-product basis increased 14% and 22% to $713 and
$9.66 per ounce, respectively, compared to the prior quarter. These
increases were due to lower quarterly production levels, but
remained within full-year guidance ranges
- Free cash flow1 of $(2.8) million
during the first quarter was driven by lower operating cash flow
from lower production levels and by higher capital expenditures.
Capital expenditures were focused on mine development, including at
the La Nación deposit, and on infrastructure projects, including
the new thickener
- Underground development at the La
Nación deposit, located between the Independencia and Guadalupe
underground mines, remains on-schedule. Production is expected to
commence in the second half of 2019, adding approximately 400 tons
per day (“tpd”) of additional mill feed
- Installation of the new thickener at a
cost of approximately $4.5 million remains on-budget and
on-schedule for completion during the third quarter. The project is
expected to increase gold and silver recovery rates by
approximately 2% each and have an estimated one-year payback
- Full-year 2019 production guidance
remains unchanged at 95,000 - 105,000 ounces of gold and 6.5 - 7.2
million ounces of silver
- Guidance for CAS and capital
expenditures also remains unchanged. CAS are expected to be $650 -
$750 per gold ounce and $9.00 - $10.00 per silver ounce. Capital
expenditures are expected to be approximately $40 - $45
million
Rochester, Nevada
(Dollars in millions, except per ounce amounts) 1Q
2019 4Q 2018 3Q 2018 2Q
2018 1Q 2018 Ore tons placed
2,667,559 3,674,566 4,061,082 4,083,028 4,351,131
Average
silver grade (oz/t) 0.46 0.46 0.52 0.53 0.54
Average
gold grade (oz/t) 0.003 0.004 0.004 0.004 0.003
Silver ounces produced (000’s) 960 1,466 1,290 1,125
1,157
Gold ounces produced 8,256 15,926 14,702 12,273
11,487
Silver ounces sold (000’s) 1,000 1,391 1,248
1,097 1,119
Gold ounces sold 8,511 15,339 14,257
12,030 11,163
Average realized price per silver ounce
$15.31 $14.53 $14.70 $16.47 $16.66
Average realized price
per gold ounce $1,299 $1,234 $1,204 $1,297 $1,331
Metal sales $26.4 $39.1 $35.5 $33.7 $33.5
Costs
applicable to sales $22.5 $29.4 $27.5 $24.5 $24.3
Adjusted CAS per AgOz1 $12.83 $10.79
$11.35 $11.89 $11.85
Adjusted CAS per AuOz1
$1,092 $917 $929 $936 $947
Exploration expense
$0.1 — $0.1 $0.2 $—
Cash flow from operating
activities $(1.0) $17.9 $5.7 $6.0 $3.4
Sustaining
capital expenditures (excludes capital lease payments)
$1.8 $7.1 $2.7 $0.4 $0.5
Development capital
expenditures $2.8 $(4.1) $0.9 $0.3
$2.1
Total capital expenditures $4.6 $3.0 $3.6
$0.7 $2.6
Free cash flow1 $(5.6) $14.9 $2.1
$5.3 $0.8
- First quarter silver and gold
production decreased 35% and 48%, respectively, to 1.0 million and
8,256 ounces compared to the prior quarter. Year-over-year, silver
and gold production decreased 17% and 28%, respectively
- Lower production was driven by lower
ore placement rates due to abnormally high snowfall levels, which
had a comparatively larger impact on gold production. Silver
production was partially offset by higher residual leaching rates
from the Stage III leach pad
- First quarter adjusted CAS1 for silver
and gold on a co-product basis each increased 19% to $12.83 and
$1,092 per ounce, respectively, quarter-over-quarter. The increases
were primarily due to comparatively lower production levels during
the quarter, but were within full-year guidance ranges
- Free cash flow1 of $(5.6) million was
driven by lower operating cash flow due to lower production levels
and by higher capital expenditures, which were primarily related to
the installation of the HPGR unit and new secondary crusher
- Installation of the HPGR unit remains
on-budget and on-schedule with commissioning activities underway in
May. Crushing rates and silver recoveries are anticipated to
increase beginning mid-year with full ramp-up expected during the
third quarter
- The Company is maintaining full-year
2019 production guidance of 4.2 - 5.0 million ounces of silver and
40,000 - 50,000 ounces of gold; installation of the HPGR unit and
the new secondary crusher is expected to result in higher
production during the second half of the year compared to the first
half
- CAS in 2019 are also unchanged and
expected to be $12.50 - $13.50 per silver ounce and $1,000 - $1,100
per gold ounce
- The Company is maintaining its guidance
for capital expenditures, which are expected to be approximately
$17 - $20 million, including approximately $12 - $15 million
associated with the HPGR unit and new secondary crusher
Kensington, Alaska
(Dollars in millions, except per ounce amounts) 1Q
2019 4Q 2018 3Q 2018 2Q
2018 1Q 2018 Tons milled 164,332
149,998 163,603 168,751 158,706
Average gold grade (oz/t)
0.20 0.21 0.17 0.16 0.17
Average recovery rate
90.2% 91.1% 90.4% 92.6% 94.0%
Gold ounces produced
29,973 28,421 25,515 25,570 26,064
Gold ounces sold
31,335 24,979 25,648 28,165 27,763
Average realized price
per gold ounce, gross $1,301 $1,267 $1,195 $1,305 $1,337
Treatment and refining charges per gold ounce $15 $21
$34 $36 $30
Average realized price per gold ounce, net
$1,286 $1,246 $1,161 $1,269 $1,307
Metal sales
$40.3 $31.1 $29.8 $35.7 $36.3
Costs applicable to
sales $32.2 $21.4 $28.2 $34.2 $28.6
Adjusted CAS per
AuOz1 $990 $843 $1,091 $1,196 $1,010
Exploration expense $0.5 $1.3 $1.6 $1.4 $1.6
Cash
flow from operating activities $6.2 $7.9 $(0.4) $3.2
$4.6
Sustaining capital expenditures (excludes capital lease
payments) $9.4 $9.8 $9.7 $9.2
$8.5
Development capital expenditures $— $0.8
$2.3 $1.5
$2.9
Total capital expenditures $9.4 $10.6 $12.0 $10.7
$11.4
Free cash flow1 $(3.2) $(2.7) $(12.4)
$(7.5) $(6.8)
- Commercial production at Jualin was
declared on December 1, 2018. The figures shown in the table above
exclude pre-commercial production
- First quarter gold production of 29,973
ounces represented a 5% increase quarter-over-quarter and a 15%
increase compared to the same period the prior year. Mining
activities at Jualin shifted focus from ore development to full
production, allowing for longhole stope production at Jualin in
future quarters
- Ore from Jualin accounted for
approximately 10% of Kensington’s gold production during the
quarter and had an average grade of 0.41 oz/t. Jualin is expected
to account for approximately 20% of Kensington’s total production
in 2019
- Adjusted CAS1 for the first quarter
increased 17% to $990 per gold ounce compared to the prior quarter.
The quarterly increase was driven by higher mining and
employee-related expenses
- Free cash flow1 of $(3.2) million was
driven by lower operating cash flow, partially offset by lower
capital expenditures. Capital expenditures were largely
attributable to underground development and capitalized infill
drilling
- Full-year 2019 production guidance
remains unchanged at 117,000 - 130,000 ounces of gold
- Full-year CAS and capital expenditures
are also unchanged. CAS are expected to be $950 - $1,050 per ounce;
capital expenditures are expected to be $20 - $25 million
Wharf, South Dakota
(Dollars in millions, except per ounce amounts) 1Q
2019 4Q 2018 3Q 2018 2Q
2018 1Q 2018 Ore tons placed
1,090,510 1,644,168 1,127,391 1,075,820 1,076,395
Average
gold grade (oz/t) 0.020 0.020 0.023 0.023 0.022
Gold
ounces produced 16,902 16,960 19,437 22,507 17,936
Silver ounces produced (000’s) 13 13 13 13 12
Gold
ounces sold 18,086 15,306 19,874 23,053 17,339
Silver
ounces sold (000’s) 14 11 12 14 11
Average realized
price per gold ounce $1,317 $1,247 $1,198 $1,285 $1,341
Metal sales $24.0 $19.3 $24.0 $29.8 $23.4
Costs
applicable to sales $17.4 $14.6 $18.0 $19.3 $15.3
Adjusted CAS per AuOz1 $949 $939 $895 $822
$868
Exploration expense $— — $0.1 $— $—
Cash flow
from operating activities $4.2 $(1.9) $3.7 $11.5 $(1.4)
Sustaining capital expenditures (excludes capital lease
payments) $0.4 $0.7 $1.2 $1.2 $0.3
Development
capital expenditures $— $— $— $—
$—
Total capital expenditures $0.4 0.7 $1.2
$1.2 $0.3
Free cash flow1 $3.8 $(2.6) $2.5
$10.3 $(1.7)
- Gold production remained relatively
flat quarter-over-quarter at 16,902 ounces in the first quarter and
decreased 6% year-over-year
- Production levels reflected the impact
of lower grade tons placed in the prior quarter. Production was
above target and is expected to increase throughout the remainder
of the year
- Adjusted CAS on a by-product basis were
relatively flat quarter-over-quarter and remained within the
full-year guidance range of $850 - $950 per ounce
- Free cash flow1 of $3.8 million was
driven by higher operating cash flow and lower capital
expenditures
- Since acquiring the operation in
February 2015 for $99 million, Wharf has generated $139.5 million
of free cash flow1
- The Company is maintaining full-year
2019 production guidance of 82,000 - 87,000 ounces of gold
- Coeur is also maintaining its full-year
2019 guidance for CAS and capital expenditures. CAS are expected to
be $850 - $950 per ounce and capital expenditures are expected to
be approximately $3 - $5 million
Silvertip, British Columbia
(Dollars in millions, except per ounce and per pound
amounts) 1Q 2019 4Q 2018 3Q
2018 2Q 2018 1Q 2018 Tons
milled 62,051 38,802 10,652 — —
Average silver grade
(oz/t) 5.50 6.06 6.66 — —
Average zinc grade (%)
5.9% 5.8% 8.0% —% —%
Average lead grade (%)
3.7% 3.9% 4.3% —% —%
Average recovery rate – Ag
69.9% 60.5% 56.3% —% —%
Average recovery rate – Zn
50.5% 69.1% 64.5% —% —%
Average recovery rate – Pb
66.8% 54.7% 45.1% —% —%
Silver ounces produced
(000's) 239 142 40 — —
Zinc pounds produced
(000's) 3,719 3,082 1,099 — —
Lead pounds produced
(000's) 3,077 1,659 413 — —
Silver ounces sold
(000's) 215 124 99 — —
Zinc pounds sold (000's)
4,723 2,604 1,772 — —
Lead pounds sold (000's)
2,748 1,419 1,230 — —
Average realized price per silver
ounce, gross $14.98 $15.54 $14.62 $— $—
Treatment and
refining charges per silver ounce $1.24 $1.38
$3.34 $— $—
Average realized price per
silver ounce, net $13.74 $14.16 $11.28 $— $—
Average
realized price per zinc pound, gross $1.50 $1.07 $1.20
$— $—
Treatment and refining charges per zinc pound
$0.31 $0.24 $0.27 $— $—
Average realized price per zinc pound, net $1.19
$0.83 $0.93 $— $—
Average realized price per lead pound,
gross $0.92 $0.87 $0.97 $— $—
Treatment and refining
charges per lead pound $0.06 $0.07 $0.07
$— $—
Average realized price per lead pound,
net $0.86 $0.80 $0.90 $— $—
Metal sales
$10.9 $4.8 $4.1 $— $—
Costs applicable to sales
$26.4 $24.1 $11.5 $— $—
Adjusted CAS per
AgOz1 $13.73 $17.68 $9.86 $— $—
Adjusted
CAS per ZnLb1 $1.18 $0.95 $0.64 $— $—
Adjusted CAS per PbLb1 $0.88 $1.02
$0.55 $— $—
Exploration expense $0.1 $0.3 $2.3 $0.1
$—
Cash flow from operating activities $(13.9)
$(34.1) $(6.8) $— $—
Sustaining capital expenditures (excludes
capital lease payments) $4.1 $8.2 $0.4 $— $—
Development capital expenditures $— $(10.8)
$17.5 $19.0 $18.6
Total capital
expenditures $4.1 $(2.6) $17.9 $19.0 $18.6
Free cash
flow1 $(18.0) $(31.5) $(24.7) $(19.0) $(18.6)
- Silvertip achieved commercial
production on September 1, 2018. The operating and financial
metrics shown in the table above exclude pre-commercial
production
- First quarter silver, zinc and lead
production increased 68%, 21% and 85%, respectively, to 0.2 million
ounces of silver, 3.7 million pounds of zinc and 3.1 million pounds
of lead compared to the prior quarter
- Higher production was driven by higher
tons milled, which increased 60% quarter-over-quarter. The mill
exceeded 1,100 tpd (1,000 metric tonnes per day (“mtpd”))
intermittently in March and averaged approximately 843 tpd (765
mtpd), excluding two days of scheduled maintenance
- Average head grades, recovery rates and
concentrate grades are expected to continue trending higher as mill
availability improves and newly-mined higher grade material is
processed
- First quarter adjusted CAS on a
co-product basis were $13.73 per silver ounce, $1.18 per payable
zinc pound and $0.88 per payable lead pound, compared to $17.68,
$0.95 and $1.02, respectively, in the prior quarter
- Free cash flow1 of $(18.0) million was
primarily driven by higher operating cash flow, compared to the
prior quarter
- The permit amendment application to
operate at a year-round mining and milling rate of 1,100 tpd (1,000
mtpd) is expected to be received late in the current quarter
- The new 220-person camp facility was
completed and opened to employees in early March 2019
- Full-year 2019 production guidance is
unchanged at 1.5 - 2.5 million ounces of silver, 25 - 40 million
pounds of zinc and 20 - 35 million pounds of lead
- Full-year 2019 guidance ranges for CAS
and capital expenditures are also unchanged. CAS are expected to be
$14.00 - $16.00 per ounce of silver, $1.00 - $1.25 per pound of
zinc and $0.85 - $1.05 per pound of lead; capital expenditures are
expected to total $20 - $25 million
Exploration
During the first quarter, Coeur’s exploration activities focused
on resource expansion and infill drilling at Palmarejo and
Kensington as well as the Sterling and Crown projects, which were
acquired in October 2018 as part of the acquisition of Northern
Empire. The drill programs at Rochester and Silvertip are scheduled
to resume in the second quarter. During the first quarter, the
Company completed 27,724 feet (8,450 meters) of resource expansion
drilling, a decrease of approximately 36% quarter-over-quarter.
During the quarter, Coeur also completed 62,402 feet (19,020
meters) of resource infill drilling, an increase of approximately
72% quarter-over-quarter.
Total feet drilled during the first quarter was approximately
13% higher compared to the prior period, reflecting Coeur’s
continued commitment to its success-based exploration program. For
the first quarter, expensed resource expansion drilling and
capitalized infill drilling were $3.7 million and $2.9 million,
respectively, compared to $4.1 million and $1.5 million during the
fourth quarter 2018.
At Palmarejo, up to seven surface and underground core rigs were
active during the first quarter. Drilling activities were focused
on the La Nación, Guadalupe, Los Bancos, Zapata and Valentina
veins. Expansion drilling delineated a potential new zone of
silver-gold mineralization at Valentina, which is located 5,250
feet (1,600 meters) west of Guadalupe. Similarly, expansion
drilling has extended the Zapata vein northwest towards Valentina,
such that there is a 2,950-foot (900-meter) gap where no drilling
exists between the two drill stations. The Company plans to utilize
two drills to focus on expansion drilling to explore this zone in
the second quarter. Infill drilling during the quarter focused on
the La Nación and Guadalupe veins.
At Kensington, three underground core drill rigs were active at
the Kensington Main Zone 30, Lower Raven and Elmira. Exploration
efforts in these zones were focused on capitalized resource infill
drilling.
At the Sterling and Crown exploration properties located in
southern Nevada, one reverse circulation rig was active during the
first quarter. Exploration activities were initially focused on
both infill and expansion drilling at the Sterling property. In
March, the rig was moved to focus on expansion drilling at the
South Daisy resource, which is contained in the Crown Block.
Surface exploration mapping and sampling at the Crown Block has
resulted in two new drill targets. As a result of this newly
sampled area, new drill pads are being permitted for testing in the
second quarter. Drilling is planned to continue with one rig
focused on the Daisy and SNA deposits in the Crown Block until the
third quarter. Coeur expects to add additional rigs at the Crown
Block later in the year.
2019 Production Guidance
Gold Silver Zinc Lead
(oz) (K oz) (K lbs)
(K lbs) Palmarejo 95,000 - 105,000 6,500 -
7,200 — —
Rochester 40,000 - 50,000 4,200 - 5,000 — —
Kensington 117,000 - 130,000 — — —
Wharf 82,000 -
87,000 — — —
Silvertip — 1,500 - 2,500
25,000 - 40,000 20,000 - 35,000
Total 334,000
- 372,000 12,200 - 14,700 25,000 - 40,000
20,000 - 35,000
2019 Costs Applicable to Sales
Guidance
Gold Silver Zinc Lead
($/oz) ($/oz) ($/lb)
($/lb) Palmarejo (co-product) $650 - $750
$9.00 - $10.00 — —
Rochester (co-product) $1,000 - $1,100
$12.50 - $13.50 — —
Kensington $950 - $1,050 — — —
Wharf
(by-product) $850 - $950 — — —
Silvertip (co-product) —
$14.00 - $16.00 $1.00 - $1.25 $0.85 - $1.05
2019 Capital, Exploration and G&A
Guidance
($M) Capital
Expenditures, Sustaining $70 - $80
Capital Expenditures,
Development $30 - $40
Exploration, Expensed $18 - $22
Exploration, Capitalized $8 - $12
General &
Administrative Expenses $32 - $36
Note: The Company’s guidance figures assume $1,275/oz gold,
$15.50/oz silver, $1.15/lb zinc and $0.95/lb lead as well as CAD of
1.30 and MXN of 20.00.
Financial Results and Conference Call
Coeur will host a conference call to discuss its first quarter
financial results on May 2, 2019 at 11:00 a.m. Eastern Time.
Dial-In Numbers: (855)
560-2581 (U.S.) (855) 669-9657 (Canada) (412) 542-4166
(International) Conference ID: Coeur Mining
Hosting the call will be Mitchell J. Krebs, President and Chief
Executive Officer of Coeur, who will be joined by Thomas S. Whelan,
Senior Vice President and Chief Financial Officer, Terry F. D.
Smith, Senior Vice President of Operations, Hans J. Rasmussen,
Senior Vice President of Exploration, and other members of
management. A replay of the call will be available through May 16,
2019.
Replay numbers: (877)
344-7529 (U.S.) (855) 669-9658 (Canada) (412) 317-0088
(International)
Conference ID:
101 29 527
About Coeur
Coeur Mining, Inc. is a U.S.-based, well-diversified, growing
precious metals producer with five wholly-owned operations: the
Palmarejo gold-silver complex in Mexico, the Rochester silver-gold
mine in Nevada, the Kensington gold mine in Alaska, the Wharf gold
mine in South Dakota, and the Silvertip silver-zinc-lead mine in
British Columbia. In addition, the Company has interests in several
precious metals exploration projects throughout North America.
Cautionary Statements
This news release contains forward-looking statements within the
meaning of securities legislation in the United States and Canada,
including statements regarding anticipated production, costs,
capital expenditures, recovery rates, exploration expenditures,
expenses, cash flow, expectations regarding Silvertip, including
but not limited to timing of receipt of permits, grades,
exploration and development efforts, the timing and impact of
installation of HPGR units at Rochester, and operations at
Palmarejo, Rochester, Wharf, Kensington and Silvertip. Such
forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause Coeur’s actual
results, performance or achievements to be materially different
from any future results, performance or achievements expressed or
implied by the forward-looking statements. Such factors include,
among others, the risk that Silvertip will not obtain necessary
permits on the expected timeline or at all, the risk that HPGR
units will not be installed at Rochester on a timely basis or the
anticipated benefits thereof will not be achieved, the risk that
anticipated production, cost and expense levels are not attained,
the risks and hazards inherent in the mining business (including
risks inherent in developing large-scale mining projects,
environmental hazards, industrial accidents, weather or
geologically related conditions), changes in the market prices of
gold, silver, zinc and lead and a sustained lower price
environment, the uncertainties inherent in Coeur’s production,
exploratory and developmental activities, including risks relating
to permitting and regulatory delays (including the impact of
government shutdowns), ground conditions, grade variability, any
future labor disputes or work stoppages, the uncertainties inherent
in the estimation of mineral reserves, changes that could result
from Coeur’s future acquisition of new mining properties or
businesses, the loss of any third-party smelter to which Coeur
markets its production, the effects of environmental and other
governmental regulations, the risks inherent in the ownership or
operation of or investment in mining properties or businesses in
foreign countries, Coeur’s ability to raise additional financing
necessary to conduct its business, make payments or refinance its
debt, as well as other uncertainties and risk factors set out in
filings made from time to time with the United States Securities
and Exchange Commission, and the Canadian securities regulators,
including, without limitation, Coeur’s most recent reports on Form
10-K and Form 10-Q. Actual results, developments and timetables
could vary significantly from the estimates presented. Readers are
cautioned not to put undue reliance on forward-looking statements.
Coeur disclaims any intent or obligation to update publicly such
forward-looking statements, whether as a result of new information,
future events or otherwise. Additionally, Coeur undertakes no
obligation to comment on analyses, expectations or statements made
by third parties in respect of Coeur, its financial or operating
results or its securities.
Christopher Pascoe, Coeur’s Director, Technical Services and a
qualified person under Canadian National Instrument 43-101,
approved the scientific and technical information concerning
Coeur’s mineral projects in this news release. For a description of
the key assumptions, parameters and methods used to estimate
mineral reserves and resources, as well as data verification
procedures and a general discussion of the extent to which the
estimates may be affected by any known environmental, permitting,
legal, title, taxation, socio-political, marketing or other
relevant factors, Canadian investors should refer to the Technical
Reports for each of Coeur’s properties as filed on SEDAR at
www.sedar.com.
Non-U.S. GAAP Measures
We supplement the reporting of our financial information
determined under United States generally accepted accounting
principles (U.S. GAAP) with certain non-U.S. GAAP financial
measures, including EBITDA, adjusted EBITDA, adjusted EBITDA
margin, free cash flow, adjusted net income (loss), operating cash
flow excluding changes in working capital and adjusted costs
applicable to sales per ounce (gold and silver) or pound (zinc or
lead). We believe that these adjusted measures provide meaningful
information to assist management, investors and analysts in
understanding our financial results and assessing our prospects for
future performance. We believe these adjusted financial measures
are important indicators of our recurring operations because they
exclude items that may not be indicative of, or are unrelated to
our core operating results, and provide a better baseline for
analyzing trends in our underlying businesses. We believe EBITDA,
adjusted EBITDA, adjusted EBITDA margin, free cash flow, adjusted
net income (loss), operating cash flow excluding changes in working
capital and adjusted costs applicable to sales per ounce (gold and
silver) and pound (zinc and lead) are important measures in
assessing the Company’s overall financial performance. For
additional explanation regarding our use of non-U.S. GAAP financial
measures, please refer to our Form 10-K for the year ended December
31, 2018.
Notes
- EBITDA, adjusted EBITDA, adjusted
EBITDA margin, adjusted net income (loss), operating cash flow
excluding changes in working capital and adjusted costs applicable
to sales per ounce (gold and silver) or pound (lead and zinc) are
non-GAAP measures. Please see tables in the Appendix for the
reconciliation to U.S. GAAP. Free cash flow is defined as cash flow
from operating activities less capital expenditures and gold
production royalty payments. Please see table in Appendix for the
calculation of consolidated free cash flow.
- Includes capital leases. Net of debt
issuance costs and premium received.
Average Spot Prices
1Q 2019 4Q 2018
3Q 2018 2Q 2018 1Q 2018 Average
Silver Spot Price Per Ounce $ 15.57 $ 14.54 $ 15.02 $ 16.53 $ 16.77
Average Gold Spot Price Per Ounce $ 1,304 $ 1,226 $ 1,213 $ 1,306 $
1,329 Average Zinc Spot Price Per Pound $ 1.23 $ 1.19 $ 1.15 $ 1.41
$ 1.55 Average Lead Spot Price Per Pound $ 0.92 $ 0.89 $
0.95 $ 1.08 $ 1.14
COEUR MINING, INC. AND
SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, 2019 (unaudited) December 31, 2018
ASSETS In thousands, except share data CURRENT ASSETS
Cash and cash equivalents $ 69,033 $ 115,081 Receivables 33,530
29,744 Inventory 60,653 66,279 Ore on leach pads 74,517 75,122
Restricted assets — — Prepaid expenses and other 13,681
11,393 251,414 297,619 NON-CURRENT ASSETS Property, plant
and equipment, net 299,756 298,451 Mining properties, net 962,058
971,567 Ore on leach pads 72,633 66,964 Restricted assets 10,444
12,133 Equity and debt securities 25,875 17,806 Receivables 31,571
31,151 Other 77,614 16,809 TOTAL ASSETS $ 1,731,365
$ 1,712,500
LIABILITIES AND STOCKHOLDERS’
EQUITY CURRENT LIABILITIES Accounts payable $ 51,777 $ 47,210
Accrued liabilities and other 102,136 82,619 Debt 24,520 24,937
Reclamation 6,552 6,552 Deferred tax liabilities — —
184,985 161,318 NON-CURRENT LIABILITIES Debt 432,269 433,889
Reclamation 131,275 128,994 Deferred tax liabilities 70,811 79,070
Other long-term liabilities 79,690 56,717 714,045
698,670 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS’ EQUITY Common
stock, par value $0.01 per share; authorized 300,000,000 shares,
205,111,221 issued and outstanding at March 31, 2019 and
203,310,443 at December 31, 2018 2,051 2,033 Additional paid-in
capital 3,442,029 3,443,082 Accumulated other comprehensive income
(loss) — (59 ) Accumulated deficit (2,611,745 ) (2,592,544 )
832,335 852,512 TOTAL LIABILITIES AND STOCKHOLDERS’
EQUITY $ 1,731,365 $ 1,712,500
COEUR
MINING, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED)
Three Months Ended March 31, 2019 2018
In thousands, except share data Revenue $ 154,870 $ 163,267
COSTS AND EXPENSES Costs applicable to sales(1) 131,650 99,340
Amortization 41,876 30,777 General and administrative 9,474 8,804
Exploration 3,714 6,683 Write-downs — — Pre-development,
reclamation, and other 4,434 4,225 Total costs and
expenses 191,148 149,829 OTHER INCOME (EXPENSE), NET Loss on debt
extinguishment — — Fair value adjustments, net 9,120 4,654 Interest
expense, net of capitalized interest (6,454 ) (5,965 ) Other, net
60 513 Total other income (expense), net 2,726
(798 ) Income (loss) before income and mining taxes (33,552 )
12,640 Income and mining tax (expense) benefit 8,658 (11,949
) Income (loss) from continuing operations $ (24,894 ) $ 691 Income
(loss) from discontinued operations 5,693 550 NET
INCOME (LOSS) $ (19,201 ) $ 1,241 OTHER COMPREHENSIVE INCOME
(LOSS), net of tax: Unrealized gain (loss) on debt and equity
securities 59 (278 ) Reclassification adjustments for impairment of
equity securities — — Reclassification adjustments for realized
(gain) loss on sale of equity securities — — Other
comprehensive income (loss) 59 (278 ) COMPREHENSIVE INCOME
(LOSS) $ (19,142 ) $ 963 NET INCOME (LOSS) PER SHARE
Basic income (loss) per share: Net income (loss) from continuing
operations $ (0.12 ) $ 0.00 Net income (loss) from discontinued
operations 0.03 0.00 Basic(2) $ (0.09 ) $ 0.00
Diluted income (loss) per share: Net income (loss) from continuing
operations $ (0.12 ) $ 0.00 Net income (loss) from discontinued
operations 0.03 0.00 Diluted(2) $ (0.09 ) $ 0.00
(1) Excludes amortization.
(2) Due to rounding, the sum of net income per share from
continuing operations and discontinued operations may not equal net
income per share.
COEUR MINING, INC. AND SUBSIDIARIES CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
Three Months Ended March 31, 2019 2018
In thousands CASH FLOWS FROM OPERATING ACTIVITIES: Net
income (loss) $ (19,201 ) $ 1,241 (Income) loss from discontinued
operations (5,693 ) (550 ) Adjustments: Amortization 41,876 30,777
Accretion 2,943 3,318 Deferred taxes (8,259 ) 454 Fair value
adjustments, net (9,120 ) (4,654 ) Stock-based compensation 2,223
2,786 Inventory write-downs 15,447 — Other 1,250 68 Changes in
operating assets and liabilities: Receivables (5,735 ) (1,691 )
Prepaid expenses and other current assets (2,684 ) (5,635 )
Inventory and ore on leach pads (18,821 ) (8,708 ) Accounts payable
and accrued liabilities (6,072 ) (1,865 ) CASH PROVIDED BY (USED
IN) OPERATING ACTIVITIES OF CONTINUING OPERATIONS (11,846 ) 15,541
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES OF DISCONTINUED
OPERATIONS — (2,690 ) CASH PROVIDED BY OPERATING ACTIVITIES
(11,846 ) 12,851 CASH FLOWS FROM INVESTING ACTIVITIES: Capital
expenditures (27,438 ) (42,345 ) Proceeds from the sale of assets
847 60 Purchase of investments — (361 ) Sale of investments 1,168
1,619 Other 1,741 (65 ) CASH PROVIDED BY (USED IN) INVESTING
ACTIVITIES OF CONTINUING OPERATIONS (23,682 ) (41,092 ) CASH USED
IN INVESTING ACTIVITIES OF DISCONTINUED OPERATIONS — (28,470
) CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES (23,682 ) (69,562
) CASH FLOWS FROM FINANCING ACTIVITIES: Issuance of notes and bank
borrowings, net of issuance costs 15,000 15,000 Payments on debt,
finance leases, and associated costs (22,356 ) (18,449 ) Other
(3,364 ) (4,606 ) CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES
OF CONTINUING OPERATIONS (10,720 ) (8,055 ) CASH USED IN FINANCING
ACTIVITIES OF DISCONTINUED OPERATIONS — (22 ) CASH PROVIDED
BY (USED IN) FINANCING ACTIVITIES (10,720 ) (8,077 ) Effect of
exchange rate changes on cash and cash equivalents 201 557
INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED
CASH (46,047 ) (64,231 ) Less net cash provided by (used in)
discontinued operations(1) — (32,930 ) (46,047 ) (31,301 )
Cash, cash equivalents and restricted cash at beginning of period
118,069 203,402 Cash, cash equivalents and restricted
cash at end of period $ 72,022 $ 172,101
(1) Less net cash provided by (used in) discontinued operations
includes the following cash transactions: net subsidiary payments
to parent company of $1,748, during the three months ended March
31, 2018.
Adjusted EBITDA Reconciliation
(Dollars in thousands except per share amounts)
LTM 1Q
2019 1Q 2019 4Q 2018 3Q 2018 2Q
2018 1Q 2018 Net income (loss) $ (68,847 ) $ (19,201 ) $
468 $ (53,044 ) $ 2,930 $ 1,241 (Income) loss from discontinued
operations, net of tax (5,693 ) (5,693 ) — — — (550 ) Interest
expense, net of capitalized interest 24,853 6,454 6,563 5,818 6,018
5,965 Income tax provision (benefit) (37,387 ) (8,658 ) (36,231 )
3,785 3,717 11,949 Amortization 139,572 41,876 37,053
31,184 29,459 30,777
EBITDA
52,498 14,778 7,853 (12,257 ) 42,124 49,382 Fair value adjustments,
net (8,104 ) (9,120 ) (731 ) (715 ) 2,462 (4,654 ) Foreign exchange
(gain) loss 9,064 665 1,986 3,104 3,309 670 (Gain) loss on sale of
assets and securities (312 ) (52 ) 298 28 (586 ) 241 Mexico
inflation adjustment (1,939 ) — — — (1,939 ) — Transaction costs 5
— (1,044 ) 1,049 — — Interest income on notes receivables (1,708 )
(180 ) (327 ) (628 ) (573 ) (248 ) Manquiri sale consideration
write-down 18,599 — — 18,599 — — Silvertip start-up write-down
42,167 15,447 17,974 8,746 — — Rochester In-Pit crusher write-down
3,441 —
—
3,441 — — Receivable write-down 6,536 — 6,536
—
—
—
Asset retirement obligation accretion 11,390 2,943 2,747 2,883
2,817 2,669 Inventory adjustments and write-downs
3,720
1,623 858 421 817 1,126
Adjusted EBITDA $
135,357
$ 26,104 $ 36,150 $ 24,671 $ 48,431
$ 49,186 Revenue $ 617,507 $ 154,870 143,855 $
148,795 $ 169,987 $ 163,267
Adjusted EBITDA Margin
22
% 17 % 25 % 17 % 28 % 30 %
Adjusted Net Income (Loss)
Reconciliation
(Dollars in thousands except per share amounts)
1Q
2019 4Q 2018 3Q 2018 2Q 2018 1Q
2018 Net income (loss) $ (19,201 ) $ 468 $ (53,044 ) $ 2,930 $
1,241 (Income) loss from discontinued operations, net of tax (5,693
) — — — (550 ) Fair value adjustments, net (9,120 ) (731 ) (715 )
2,462 (4,654 ) (Gain) loss on sale of assets and securities (52 )
326 — (586 ) 241 Gain on repurchase of Rochester royalty — (28 ) 28
— — Mexico inflation adjustment — — — (1,939 ) — Transaction costs
— (1,044 ) 1,049 — — Interest income on notes receivables (180 )
(327 ) (628 ) (573 ) (248 ) Manquiri sale consideration write-down
— — 18,599 — — Silvertip start-up write-down 15,447 17,974 8,746 —
— Rochester In-Pit crusher write-down —
—
3,441 — — Receivable write-down — 6,536
—
—
—
Foreign exchange loss (gain) 1,256 (530 ) 6,062 (1,233 )
4,312
Tax effect of adjustments(1) (5,415 ) (6,559 ) (3,191 ) — —
Adjusted net income (loss) $ (22,958 ) $ 16,085
$ (19,653 ) $ 1,061 $ 342
Adjusted
net income (loss) per share - Basic $ (0.11 ) $ 0.08 $ (0.11 )
$ 0.01 $ 0.00
Adjusted net income (loss) per share - Diluted
$ (0.11 ) $ 0.08 $ (0.11 ) $ 0.01 $ 0.00
Consolidated Free Cash Flow
Reconciliation
(Dollars in thousands)
1Q 2019 4Q 2018 3Q
2018 2Q 2018 1Q 2018 Cash flow from continuing
operations $ (11,846 ) $ 72 $ 5,789 $ (1,294 ) $ 15,541 Capital
expenditures from continuing operations 27,438 17,805
39,472 41,165 42,345 Free cash flow (39,284 )
(17,733 ) (33,683 ) (42,459 ) (26,804 )
Cash Flow Before Changes in Working
Capital Reconciliation
(Dollars in thousands)
1Q 2019 4Q 2018 3Q
2018 2Q 2018 1Q 2018 Cash flow before changes in
operating assets and liabilities $ 21,466 $ 24,481 $ 12,933 $
41,496 $ 33,440 Receivables (5,735 ) 7,249 (5,930 ) (8,888 ) (1,691
) Prepaid expenses and other (2,684 ) 1,008 1,377 8,126 (5,635 )
Inventories (18,821 ) (24,858 ) (8,156 ) (2,766 ) (8,708 ) Accounts
payable and accrued liabilities (6,072 ) (7,808 ) 5,565
(39,262 ) (1,865 ) Cash provided by (used in) continuing operating
activities (11,846 ) 72 5,789 (1,294 ) 15,541
Reconciliation of
Costs Applicable to Sales for Three Months Ended March 31,
2019 In thousands except per ounce or per pound
amounts Palmarejo Rochester
Kensington Wharf Silvertip
Total Costs applicable to sales, including
amortization (U.S. GAAP) $ 47,772 $ 26,491 $ 43,902 $ 20,073 $
34,811 $ 173,049
Amortization (14,528 ) (4,037 ) (11,727 )
(2,681 ) (8,426 ) (41,399 )
Costs applicable to sales $
33,244 $ 22,454 $ 32,175 $ 17,392 $ 26,385 $ 131,650
Inventory
Adjustments (141 ) (323 ) (1,164 ) (5 ) (15,447 ) (17,080 )
By-product credit — — — (217 ) —
(217 )
Adjusted costs applicable to sales $ 33,103 $ 22,131
$ 31,011 $ 17,170 $ 10,938 $ 114,353
Metal Sales
Gold ounces 27,394 8,511 31,335 18,086 85,326
Silver
ounces 1,405,409 1,000,453 — 14,052 215,101 2,635,015
Zinc
pounds 4,723,069 4,723,069
Lead pounds 2,747,847
2,747,847
Revenue Split Gold 59 % 42 % 100 %
100 %
Silver 41 % 58 % 27 %
Zinc 51 %
Lead 22
%
Adjusted costs applicable to sales Gold
($/oz) $ 713 $ 1,092 $ 990 $ 949
Silver ($/oz) $ 9.66 $
12.83 $ 13.73
Zinc ($/lb) $ 1.18
Lead ($/lb) $ 0.88
Reconciliation of
Costs Applicable to Sales for Three Months Ended December
31, 2018 In thousands except per ounce or per pound
amounts Palmarejo Rochester
Kensington Wharf Silvertip
Total Costs applicable to sales, including
amortization (U.S. GAAP) $ 42,119 $ 35,365 $ 30,703 $ 16,839 $
28,246 $ 153,272
Amortization (14,992 ) (5,992 ) (9,437 )
(2,184 ) (4,161 ) (36,766 )
Costs applicable to sales $
27,127 $ 29,373 $ 21,266 $ 14,655 $ 24,085 $ 116,506
Inventory
Adjustments (205 ) (312 ) (220 ) (121 ) (17,974 ) (18,832 )
By-product credit — — — (166 ) —
(166 )
Adjusted costs applicable to sales $ 26,922 $ 29,061
$ 21,046 $ 14,368 $ 6,111 $ 97,508
Metal Sales
Gold ounces 23,667 15,338 24,979 15,306 79,290
Silver
ounces 1,534,595 1,389,916 — 10,932 124,144 3,059,587
Zinc
pounds 2,603,972 2,603,972
Lead pounds 1,418,653
1,418,653
Revenue Split Gold 55 % 48 % 100 %
100 %
Silver 45 % 52 % 36 %
Zinc 40 %
Lead 24
%
Adjusted costs applicable to sales Gold
($/oz) $ 624 $ 917 $ 843 $ 939
Silver ($/oz) $ 7.92 $
10.79 $ 17.68
Zinc ($/lb) $ 0.95
Lead ($/lb) $ 1.02
Reconciliation of
Costs Applicable to Sales for Three Months Ended September
30, 2018 In thousands except per ounce or per pound
amounts Palmarejo Rochester
Kensington Wharf Silvertip
Total Costs applicable to sales, including
amortization (U.S. GAAP) $ 46,349 $ 32,842 $ 35,153 $ 20,856 $
12,609 $ 147,809
Amortization (14,795 ) (5,294 ) (6,912 )
(2,878 ) (1,073 ) (30,952 )
Costs applicable to sales $
31,554 $ 27,548 $ 28,241 $ 17,978 $ 11,536 $ 116,857
Inventory
Adjustments (16 ) (136 ) (265 ) (4 ) (8,746 ) (9,167 )
By-product credit — — — (177 ) —
(177 )
Adjusted costs applicable to sales $ 31,538 $ 27,412
$ 27,976 $ 17,797 $ 2,790 $ 107,513
Metal Sales
Gold ounces 29,831 14,257 25,648 19,874 89,610
Silver
ounces 1,572,093 1,248,163 — 12,426 98,831 2,931,513
Zinc
pounds 1,772,023 1,772,023
Lead pounds 1,230,266
1,230,266
Revenue Split Gold 58 % 48 % 100 %
100 %
Silver 42 % 52 % 35 %
Zinc 41 %
Lead 24
%
Adjusted costs applicable to sales Gold
($/oz) $ 615 $ 929 $ 1,091 $ 895
Silver ($/oz) $ 8.39 $
11.35 $ 9.86
Zinc ($/lb) $ 0.64
Lead ($/lb) $ 0.55
Reconciliation of
Costs Applicable to Sales for Three Months Ended June 30,
2018 In thousands except per ounce or per pound
amounts Palmarejo Rochester
Kensington Wharf Silvertip
Total Costs applicable to sales, including
amortization (U.S. GAAP) $ 44,944 $ 29,243 $ 40,668 $ 22,611 $
— $ 137,466
Amortization (14,633 ) (4,793 ) (6,441 ) (3,353
) — (29,220 )
Costs applicable to sales $ 30,311 $
24,450 $ 34,227 $ 19,258 $ — $ 108,246
Inventory Adjustments
(41 ) (144 ) (551 ) (81 ) — (817 )
By-product credit —
— — (220 ) — (220 )
Adjusted costs
applicable to sales $ 30,270 $ 24,306 $ 33,676 $ 18,957 $ — $
107,209
Metal Sales Gold ounces 31,207 12,031
28,165 23,053 94,456
Silver ounces 2,091,788 1,097,272 —
13,744 — 3,202,804
Zinc pounds — —
Lead pounds — —
Revenue Split Gold 51 % 46 % 100 % 100 %
Silver 49 % 54 % — %
Zinc — %
Lead — %
Adjusted costs applicable to sales Gold ($/oz) $ 497
$ 936 $ 1,196 $ 822
Silver ($/oz) $ 7.05 $ 11.89 $ —
Zinc
($/lb) $ —
Lead ($/lb) $ —
Reconciliation of Costs Applicable to Sales
for Three Months Ended March 31, 2018 In thousands
except per ounce or per pound amounts Palmarejo
Rochester Kensington Wharf
Silvertip Total Costs applicable to
sales, including amortization (U.S. GAAP) $ 47,420 $ 29,136 $
35,347 $ 17,966 $ — $ 129,869
Amortization (16,325 ) (4,831
) (6,717 ) (2,657 ) — (30,530 )
Costs applicable to
sales $ 31,095 $ 24,305 $ 28,630 $ 15,309 $ — $ 99,339
Inventory Adjustments 8 (471 ) (591 ) (72 ) — (1,126 )
By-product credit — — — (183 ) —
(183 )
Adjusted costs applicable to sales $ 31,103 $ 23,834
$ 28,039 $ 15,054 $ — $ 98,030
Metal Sales Gold
ounces 30,888 11,163 27,763 17,339 87,153
Silver ounces
2,030,703 1,119,227 — 10,983 — 3,160,913
Zinc pounds — —
Lead pounds — —
Revenue Split Gold 52 %
44 % 100 % 100 %
Silver 48 % 56 % — %
Zinc — %
Lead — %
Adjusted costs applicable to sales
Gold ($/oz) $ 519 $ 947 $ 1,010 $ 868
Silver ($/oz) $
7.43 $ 11.85 $ —
Zinc ($/lb) $ —
Lead ($/lb) $ —
Reconciliation of Costs Applicable to
Sales for 2019 Guidance
In thousands except per ounce amounts
Palmarejo Rochester Kensington Wharf
Silvertip Total Costs applicable to sales,
including amortization (U.S. GAAP) $ 196,310 $ 131,918 $
154,285 $ 90,299 $ 156,417 $ 729,229
Amortization 62,808
21,606 36,909 11,583
57,177 190,083
Costs applicable to sales $
133,502 $ 110,312 $ 117,376 $ 78,716 $ 99,240 $ 539,146
By-product credit — — — (1,167 )
— (1,167 )
Adjusted costs applicable to sales
$ 133,502 $ 110,312 $ 117,376 $ 77,549 $ 99,240 $ 537,979
Metal Sales Gold ounces 100,000 45,000 121,000 85,500
Silver ounces 6,850,000 4,800,000 75,000 2,100,000
Zinc
pounds 35,000,000
Lead pounds 28,500,000
Revenue Split Gold 52% 43% 100% 100%
—
Silver 48% 57% — — 32%
Zinc — — — — 40%
Lead —
— — — 28%
Costs applicable to sales per ounce Gold
($/oz) $650 - $750 $1,000 - $1,100 $950 - $1,050 $850 - $950 —
Silver ($/oz) $9.00 - $10.00 $12.50 - $13.50 — — $14.00 -
$16.00
Zinc ($/lb) — — — — $1.00 - $1.25
Lead ($/lb)
— — — — $0.85 - $1.05
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version on businesswire.com: https://www.businesswire.com/news/home/20190501005992/en/
For Additional InformationCoeur Mining, Inc.104 S.
Michigan Avenue, Suite 900Chicago, IL 60603Attention: Paul
DePartout, Director, Investor RelationsPhone: (312)
489-5800www.coeur.com
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